KARACHI, Aug 21: Trading on the cotton market resumed on a cheerless note as physical business failed to pick up in the absence of strong mill buying. Stray lots did change hands but delivery problems owing to fresh rain in the major cotton growing areas continued to haunt spinners, floor brokers said.

Most of the spinners and mills are interested to make fresh commitments on Karachi delivery basis as fears of damage to the consignments in rain appear to be the main inhibiting factor, they said.

They said ginned lint in some of the ginneries in the central Sindh cotton belt had already been damaged by the rain and was sold at a discount.

According to reports reaching here from the lower Sindh cotton belt a good number of bales of phutti lying in open plinths in the ginneries was also damaged, which could well mean an inferior type of lint to be sold at much lower rates.

“Most of the ginners who have purchased phutti at much higher rates ranging from Rs1,025 to Rs1,100 per 40 kg are trapped in the monsoon rain and suffer losses on account of quality premiums of damaged lint,” market sources.

But some others said reported damage to the standing crop in some of the areas in the Sindh cotton belt may compensate their losses as prices were expected to rise from the current level aided by fears of a short crop.

Crop situation in the Punjab cotton belt was said to be normal where rain was mostly in line with standing crop needs. That was perhaps why, prices remained steady there.

Official spot rates did not show any change and were firmly held at the last level at Rs2,450 per maund.

Ready off-take was modest totalling about 1,000 bales including 600 bales from Tando Adam at Rs2,415 and 200 bales, Bahawalnagar at Rs2,600.